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Peter O'Neill warns landowners PNG Government won't be held to ransom over Ok Tedi

Updated
Wed Oct 23 13:55:10 EST 2013

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The Ok Tedi mine is PNG's Western Province

Ok Tedi Mine CMCA Review

Papua New Guinea's Prime Minister Peter O'Neill has warned landowners from PNG's Ok Tedi Mine area that they risk being left out of negotiations and benefits for threatening to forcefully close the mine.

Representatives from communities along the Fly River, who are badly affected by the mine's waste, are asking for more than 63 per cent shares in the mine.

Landowners from the 162 mine-affected communities are threatening to close the mine itself if the PNG government does not give in to its demands.

Mr O'Neill says the government is willing to negotiate with landowners, but won't respond to threats.

"No government should be held to ransom by any landowners," he said.

"No government agencies will be held to ransom so they have to be very careful in what they should say and what they do.

"There is a lawful means for attending to your own issues - don't take the law into your own hands."

"Where are you going to get the money to do this job? It is by developing those resources, collecting those taxes, making sure the revenue is collected on time so you can start spending on these services.

"We are trying to do the right thing...if they don't want to be a participant in the negotiations for the shareholders we will do a deal with the mine site landowners and then if they are not on the party we will leave them behind.

"It is entirely up to them - I am not going to wait forever."

The charitable trust PNG Sustainable Development Program (PNGSDP) had owned 63 per cent of the mine, with the state owning the rest.

The new laws cancelled the PNGSDP's shares and issued new shares to the state, giving it complete ownership.